(Web Desk) – On Monday, the Pakistani rupee sank to a 19-month low versus the US dollar in the interbank market, ending at 284.22, down Re0.25.
The rupee was last seen at this level in December 2023.
The currency had declined marginally the previous week, finishing at 283.97 and down 0.09 percent for the week. Analysts predict more depreciation, with the rupee falling over 290 versus the US dollar during fiscal year 2025-26 due to increased import demand.
In the open market, the rupee fell 9 paise for purchasing and 24 paise for selling versus the US dollar, closing at 285.50 and 286.64, respectively.
The rupee closed at 335.29 and 337.64 against the euro, up 40 and 56 paise, respectively. The rupee held steady versus the UAE dirham and Saudi riyal, ending at 77.68 and 78.10, and 75.98 and 76.40, respectively.
In the interbank market, the dollar was trading at Rs284.22 on the bid side and Rs284.41 on the offer side. In the open market, it was priced at Rs285.50 and Rs286.64, respectively.
Globally, the US dollar was near its lowest level versus the euro since 2021, and its weakest against the Swiss franc since 2015. Traders were keeping an eye out for developments as President Donald Trump’s 90-day embargo on reciprocal tariffs expires on Wednesday.
Trump said on Friday that he would select over a dozen nations that will get fresh tariff letters, with many of the higher rates slated to go into effect on August 1. On Sunday, US Treasury Secretary Scott Bessent forecasted multiple announcements in the coming days.
The US dollar index, which monitors the currency against six major rivals, remained steady at 96.967, slightly above last Tuesday’s 3-1/2-year low of 96.373.
Oil prices, which impact currency markets, recovered early losses on Monday, despite OPEC+ agreeing to increase output more than expected. The company declared an output rise of 548,000 barrels per day in August, above the 411,000 bpd increases witnessed in the preceding three months.
Brent crude fell to $67.22 per barrel before rising to $68.66, a 36-cent increase. US West Texas Intermediate traded at $66.99, down one penny from the previous closing but still above the session low of $65.40.